The transaction will expand Verizon's capabilities in the automotive and fleet telematics marketplace and accelerate growth in vertical segments, including emerging machine-to-machine services applications driven by consumer trends and increasingly connected lifestyles.

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The merger is expected to close in the third quarter of 2012, and Verizon plans to retain the existing management team and operate the new unit as a subsidiary within Verizon and operated as part of its Verizon Enterprise Solutions group. The business will continue to be headquartered in Atlanta.